Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [5][8]. Core Views - The company is positioned as a leading brand in the oriental fashion jewelry sector, with a focus on mid-to-high-end fashion consumer goods. It has successfully expanded its brand influence and market presence through strategic partnerships and product diversification [7][10]. - The company is expected to benefit from rising gold prices and its ongoing expansion of franchise stores, which will enhance its market penetration and long-term performance outlook [10][51]. Summary by Sections Market Performance - As of June 27, 2025, the closing price is 13.70 yuan, with a market capitalization of 12,172.62 million yuan and a circulating market value of 11,877.96 million yuan. The stock has seen a one-year high of 18.18 yuan and a low of 4.02 yuan [3]. Financial Forecast and Valuation - Revenue projections for 2025-2027 are 79.0 billion yuan, 90.5 billion yuan, and 99.4 billion yuan, with year-on-year growth rates of 21.2%, 14.6%, and 9.8% respectively. The expected net profit for the same period is 4.7 billion yuan, 5.6 billion yuan, and 6.6 billion yuan, with growth rates of 140.9%, 20.6%, and 17.7% respectively. The current price-to-earnings ratios are projected to be 26, 22, and 18 times [6][51]. Business Model and Brand Strategy - The company operates three main brands: "CHJ潮宏基," "ADELE VENTI梵迪," and "FION菲安妮," focusing on jewelry and fashion handbags. It emphasizes the integration of traditional craftsmanship with modern design to appeal to younger consumers [7][14]. - The company is expanding its franchise model domestically and has initiated international expansion into Southeast Asia, with plans to open stores in Malaysia and Thailand [7][45]. Revenue Contribution and Growth Drivers - In 2024, the revenue contribution from self-operated, franchise, and wholesale channels is projected to be 30.2 billion yuan, 32.8 billion yuan, and 1.9 billion yuan respectively. The franchise model is expected to grow significantly, with the number of franchise stores increasing to 1,268 by the end of 2024 [7][33]. - The company is leveraging cultural elements and popular IP collaborations to enhance product offerings and attract a younger demographic [26][28]. Competitive Positioning - The company is compared with peers such as Lao Feng Xiang, China Gold, and Zhou Dazheng, with a focus on its unique positioning as a leading oriental fashion jewelry brand. The report suggests that the company is well-positioned to capitalize on market trends and consumer preferences [10][51].

Core Viewpoint - Chao Hong Ji is planning to list H-shares in Hong Kong to enhance its global strategy and brand image, following a significant increase in its stock price and recent financial performance improvements [1][2]. Group 1: Stock Performance - Chao Hong Ji's stock price has shown a notable increase, with a cumulative price deviation of over 20% across three consecutive trading days (May 16, May 19, and May 20, 2025) [1]. - As of May 21, 2025, the stock closed at 12.22 yuan, up 8.33%, representing a 31.68% increase from the closing price on May 15, 2025 [1]. - The stock reached an intraday high of 12.41 yuan [1]. Group 2: Financial Performance - In 2024, Chao Hong Ji reported a revenue of 6.518 billion yuan, a year-on-year increase of 10.48%, while the net profit attributable to shareholders was 193 million yuan, a decrease of 41.91% [1]. - The first quarter of 2025 showed a recovery, with revenue of 252 million yuan, up 25.36%, and a net profit of 189 million yuan, an increase of 44.38% year-on-year [1]. Group 3: International Expansion - Chao Hong Ji is focusing on the Southeast Asian market as its first step in international expansion, marking a significant move towards brand globalization [1]. - The company is currently in discussions with intermediaries regarding the specifics of the H-share listing, which will not change the control of the company [2]. - In 2024, revenue from the Hong Kong, Macau, and Taiwan regions was only 703,120 yuan, and from other Asian regions was 1.938 million yuan, accounting for just 0.11% and 0.30% of total revenue, respectively [2].

Group 1 - Heng Rui Pharmaceutical has set the final price for its H-share issuance at HKD 44.05 per share, which is the upper limit of the previously expected price range [1] - The H-shares will officially be listed on the Hong Kong Stock Exchange on May 23, with cornerstone investors including GIC, Invesco, UBS Global Asset Management, Hillhouse Capital, and Boyu Capital [1] - The purpose of this H-share issuance is to further promote the company's global strategic layout, enhance its international brand image, and strengthen connections with overseas capital markets [1] Group 2 - Chao Hong Ji is planning to issue H-shares for listing on the Hong Kong Stock Exchange, with details and plans yet to be finalized [2] - The company has experienced significant stock price fluctuations, with a cumulative increase of over 20% in closing prices over three consecutive trading days [2] - This move is aimed at expanding the international market and enhancing brand influence, which is expected to positively impact the company's long-term development [2] Group 3 - ZTO Express reported a revenue of CNY 10.892 billion for Q1 2025, representing a year-on-year increase of 9.4% [3] - The gross profit for the same period was CNY 2.689 billion, a decrease of 10.4% year-on-year, while the adjusted net profit was CNY 2.259 billion, up 1.6% year-on-year [3] - The company completed a total of 8.5 billion packages in Q1, marking a year-on-year growth of 19.1% [3] Group 4 - Hangpin Life Technology announced the acquisition of 1 million shares of China Petroleum at an average price of HKD 6.285 per share, totaling HKD 6.285 million [4] - This acquisition is part of the company's diversification strategy, aimed at increasing investment returns and financial flexibility [4] - The shares acquired will be held as a long-term investment to achieve capital appreciation and potential dividend income [4]

Core Viewpoint - Chao Hong Ji (002345.SZ) is planning to issue H-shares on the Hong Kong Stock Exchange, with discussions ongoing with relevant intermediaries, but the details remain uncertain [2] Company Overview - Chao Hong Ji was founded in 1996 by the Liao family from Chaoshan, with a focus on jewelry and fashion bags, operating under two main brands: "CHJ Chao Hong Ji" and "FION" [2][3] - The company emphasizes the promotion of Eastern culture and the revival of traditional craftsmanship, launching several pure gold jewelry pieces crafted using intangible cultural heritage techniques in 2024 [3] Financial Performance - In the first quarter of this year, Chao Hong Ji achieved a revenue of 2.252 billion yuan, representing a year-on-year growth of 25.36%, and a net profit of 189 million yuan, up 44.38% year-on-year [3] - Despite fluctuations in gold prices affecting other jewelry companies, Chao Hong Ji's performance has remained strong, distinguishing itself with a more accessible pricing strategy compared to high-end competitors [3] Market Position - As the first fashion jewelry company listed on A-shares in China, Chao Hong Ji has initiated overseas expansion while maintaining a focus on affordable luxury, with popular products priced around 1,000 yuan [3] - As of May 21, the stock closed at 12.22 yuan per share, up 8.33%, with a total market capitalization of 10.86 billion yuan [3]